Presentation on theme: "Domestic Tourism Growth Strategy implementation 18 March 2014"— Presentation transcript:
1Domestic Tourism Growth Strategy implementation 18 March 2014
2discussion points…Overview of the global and domestic tourism landscapeImproving the competitiveness of the sectorTowards the 2020 vision - Strategic frameworks, focus, programmes, business support and engagement forumsThe role and rewards for business in growing tourismIntergovernmental relations and tourism
3global tourism overview … Over the past six decades, tourism experienced continued expansion and diversification, becoming one of the largest and fastest-growing economic sectors in the world.Despite occasional shocks such as global recession and regional conflicts, international tourist arrivals have shown virtually uninterrupted growth – from 25 million in 1950, to 278 million in 1980, 528 million in 1995, and 1,035 million in 2012.According to the UNWTO Tourism Barometer, International tourist arrivals worldwide will increase by 3.3% a year from 2010 to 2030 to reach 1.8 billion by 2030.The market share of emerging economies increased from 30% in 1980 to 47% in 2012, and is expected to reach 57% by 2030, equivalent to over one billion international tourist arrivals which encourages markets such as ours to stay ahead of our competitors in order to reap the rewards.
4Tourism growth in South Africa … In 1993, South Africa received a mere 3.4 million foreign visitors.By 2012, the figure had grown by 300 % to 13.5 million visitors, of which 9.2 million were tourists.in 2012, a total of international tourists visited South Africa. This was 10.2% more than tourists who travelled to the country in More than double the 4% global average in tourist growth according to the UNWTOThe UK, USA, Germany and France remain key source markets with about 1.2 million high yield arrivalsEfforts to market in new and emerging markets in Asia and India have begun to bear fruit with China surpassing France in arrivals in 2012 with over visitorsWith this level of growth, the sector’s potential to provide more youth business and employment opportunities are high.
5according to the Tourism Satellite Account (December 2011) … Direct tourism contribution to the GDP went up by 5% to 84.3 billion rand in 2011.Furthermore, direct employment in the sector as a percentage of overall employment in the country went up from 4.3% to 4.5% between 2010 and 2011 representing an increase of about direct jobs in the sector from 2010 to a total direct employment of 598,432 in 2011.Total domestic tourism expenditure increased from R69 billion in 2010 to R101 billion in 2011, an increase of over R30 billion.
6Domestic tourism performance … Total number of domestic tourism trips went down from 26.4 million in 2011 to 25.4 million in 2012 recording a declining growth of 3.8 %.Number of adult domestic tourists also went down from 13.9 million in 2011 to 12.5 million in 2012.Although the number of domestic adult travellers and trips has been on the decline, total domestic spend by these travellers has been on the increase;Domestic tourism expenditure(including the domestic portion of outbound tourism expenditure) went up from R million in 2008 to R in This was also an increase from R million in 2010.In 2011 domestic tourism accounted for about 58% of total tourism expenditure in South Africa as per the Tourism Satellite Account (TSA) released by StatsSA.
7competitiveness of the sector … The industry’s recovery and growth is evidence that we have decisively but not completely dealt with some of the core elements affecting our competitiveness as a destination as outlined in the Global Competitiveness Study 2005 – 2010.According to this study; the south African industry had to deal with a number of factors to improve its attractiveness as a destination. The factors centred around 5 core elements of supply and demand conditions, firm/business strategies, harnessing supporting industries and sorting out the institutional and regulatory arrangements.The following issues were identified by the Competitiveness Study as hindrances to growth however the Department in partnership with some industry players are tackling some of these. They are safety and security, lack of innovation, poor skills development, inconsistent quality assurance, poor public transport, poor information provision, aviation pricing and air lift capacity, transformation if the sector, market access and collaboration between government and the private sector.
8What is NDT doing to deal with challenges… Under the new Tourism Department, we set ourselves a new VISION:“To be a catalyst for tourism growth and development in South Africa” and“To be the top 20 tourism destination of choice by 2020”MISSIONA strategy focused department, committed to create a conducive environment for growing and developing tourism through:innovationstrategic partnerships and collaborationproviding information and knowledge management servicestrengthening institutional capacity
9we developed strategic frameworks … NDT is guided in its work by the National Tourism Sector Strategy (NTSS) developed with industry in 2011 and under implementation.The NTSS responds to the Growth Path and in line with the NDPIt seeks to reduce unemployment, inequality and poverty through tourism growthNTSS focused the industry on the developing domestic tourism as a backbone for the sectorAs a result, Domestic Tourism Growth Strategy was formulated in 2012 and under implementationFrameworks for the development of niche tourism markets have been developed in Culture and Heritage, rural tourism, avitourism, events and social tourism strategies
10…background - NTSS Tourism Growth and the Economy VISIONTo be a top 20 tourism destination in the world by 2020THEME1Tourism Growth and the EconomyTHEME2Enhanced Visitor ExperienceTHEME3Sustainability and Good GovernanceCLUSTER 1Policy, Strategy,Regulations, Governance, andMonitoring & EvaluationCLUSTER 2Tourism Growth& Development 2.1 Demand2.2 SupplyCLUSTER 3People DevelopmentCLUSTER 4Enablers of Growth
11strategic Objectives … Theme 1: Tourism & the EconomyTo grow the tourism sector’s absolute contribution to the economyTo provide excellent people development and decent work within the tourism sectorTo increase domestic tourism’s contribution to the tourism economyTo contribute to the regional tourism economyTheme 2: Visitor Experience & the BrandTo deliver a world - class visitor experienceTo entrench a tourism culture amongst South AfricansTo position South Africa as a globally recognized tourism destination brandTheme 3: Sustainability & Good GovernanceTo achieve transformation within the tourism sectorTo address the issue of geographic, seasonal and rural spreadTo promote responsible tourism practices within the sectorTo unlock local government tourism economic development potential
12NTSS Priorities… Calls for a more focus on Rural Tourism Development. Setting up of a National Conventions and Events Bureau.More attention to Product and Enterprise Development.Development of a National Research Framework.Calls for the need to focus on Domestic TourismEngage all other ministries that have an impact on tourism, provinces and municipalities.More focus on the Africans priority markets in consultation with the industry.Develop a marketing strategy targeted at the African marketDevelop a database of all tourism assets and explore mechanisms & ways of promoting the registration of tourism business in South Africa.Formalise structures for collaboration and interaction between public and private sector.Prioritise tourism at provincial and local government.Identify niche product development and rural tourism development
13… rationale for domestic tourism Most people have not had an opportunity to travel in South Africa. Reasons for this vary from affordability, no incentive to travel, time constraints, unemployed and dislike travellingLack of travelling culture especially amongst black South Africans due to inadequate marketing and informationNeed to increase domestic tourism’s contribution to tourism
14strategic objectives … Increase domestic tourism revenue.Increase domestic tourism volumes.Improve measures and efforts aimed at addressing seasonality and equitable geographical spread.Enhance the level of the culture of travel and tourism among South Africans.
15we set 2015 & 2020 performance targets … GDP (Direct): R118,4 bn (2015) and R188 bn (2020);GDP (Direct & Indirect): R318,2 bn (2015) and R499 bn (2020),Tourist Arrivals: 12,1 mil and 15 mil ( 2015 and 2020);Jobs (Direct): (2015) and (2020);Jobs (Direct & Indirect): and 1,1 million in 2015 andDomestic contribution to GDP 55% (2015) and 60% (2020)Domestic holiday trips : 16 mil (2015) and 18 million by (2020).
16we re-engineered the organisation … International Tourism ManagementStrategic and policy direction for the development of South Africa’s tourism potential throughout various regions of the world.Policy and Knowledge ServicesStrategic tourism sector policy development, monitoring and evaluation, research and knowledge management services.Domestic Tourism ManagementStrategic and policy direction for the development and growth of sustainable domestic throughout South Africa.jjjjjjjjjjjjjj
17we strengthened our partnerships … South African TourismDestination Marketing Organisation, set up according to the tourism act.Promotes South Africa in terms of its unique selling points as an all-season, year-round preferred tourist destination as guided by the tourism growth strategy.Tourism Enterprise Partnership (TEP)A Public Private Partnership geared towards the development, growth and sustainability of tourism enterprises.Tourism Business Council of South AfricaIs the umbrella association for the tourism industry.Lobby’s and advocates the interest of the private sector on various policy and strategic platforms.
18we consolidated our programmes… Service Excellence Standards- SANS 1197Responsible Tourism Standards – SANS 1162Tourism Month and WTD CelebrationsEducators SeminarsGuidelines on Visitor Information centres and supportTourism Enterprise partnershipDomestic Tourism awareness – Radio campaign
19we consolidated our programmes… Social Responsibility Implementation (SRI) Programme is poverty alleviation and job creation through tourism development.Branding of Visitor Information CentresEducators Seminars and Service Excellence campaignsCapacity building programme for rural districtsLocal government tourism training programmeTourist guides regulations (Registrars Powers, Registration, associations, database, badge, illegal guiding, enforcement, reporting etc.).
20skills development & quality assurance … Tourism HRD Strategy 2008 also proposed mechanisms through the above gaps should be closed including training initiatives such as the programmes the department has now embarked upon e.g.Annual National Tourism Careers Expo (NTCE),Chefs Training for over youth,Sommelier programme – Wine and foodFood Safety programme – new pilot for 100 food quality assurersPlacement of candidates locally and abroad in partnership with industry,
22Research Approach … NTSS informs the research approach: MoU with Universities (research collaboration).National tourism research and Knowledge management committee (alignment – e.g. Indicators).Minister’s Policy Research Expert Forum (quality assurance).Development of a country (consolidated) research agenda.Current research projects (Tourist guides - cross border, destination competitiveness, service excellence etc.)3
23TEP Strategic business support … 2. Skills Development3. Market AccessBusiness Consulting ServicesFundingSupport (BDF)Needs Analysis, Intervention Plans, AssessmentsSouth Africa Hidden TreasuresParticipationBusiness LinkagesExhibitionsEventsAdvertisingMarketing CollateralWebsite ListingPublic RelationsNetworkingIndustry CompetitionsBusiness Leadership ProgrammeMentorshipLearning NetworksBusiness Skills Training4 Modules = Admin, Finance, HR, MarketingTEP Toolkit WorkshopsTourism AwarenessTourism ChannelWebsite PlanningCommunication in TourismPricce SettingQuality Assusrance and Customer CareExhibitionsBusiness PlanningMarketing in TourismBusiness AdministrationCustomer First Training
25Support for rural job intensive tourism infrastructure projects … Projects to be considered are those that:Unlock domestic tourism opportunities,Competitive and position South Africa’s tourism industryGenerate a labour content of between 35% and 60% of the total project costTarget rural areas and areas with the highest unemployment rateAre viable and have the potential to be sustainable in the long-termAre in line with the NTSS and DGTS focus areas
26Examples; Kgamothaga – Atteridgeville Mamelodi Rondavels Moretele Park Chalets
27Government cannot do it alone … how can business partner? Strategic partnerships in business support, transformation and business linkagesIncreasing economic opportunities through staff training and customer satisfaction which increases repeat rates, volumes and yield.Positively influencing community attitudes towards tourism through local sourcing of productsBuilding your brand by incorporating local culture , supplies and services in product development to offer a unique guest experienceDecreasing operating costs by sourcing local goods and services and reduce leakages from imports and transport costsCreating inclusive business models that improve employment practices, build business linkages and initiatives that demonstrate positive social and economic impacts reducing poverty, unemployment and inequality.
28...IGR implications Familiarisation with the domestic tourism strategy Development of domestic tourism plans and campaigns linked to Provincial and District approachesRoll out of such domestic tourism plans and campaigns in partnership with District and Provincial sector DepartmentsIdentify programme linkages with National Sector Departments, external/ private/ CBO & NGO and donor funding partners